{"id":122710,"date":"2021-10-11T13:41:37","date_gmt":"2021-10-11T13:41:37","guid":{"rendered":"https:\/\/fin2me.com\/?p=122710"},"modified":"2021-10-11T13:41:37","modified_gmt":"2021-10-11T13:41:37","slug":"frances-carrefour-and-auchan-end-talks-over-19-4-billion-tie-up","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/frances-carrefour-and-auchan-end-talks-over-19-4-billion-tie-up\/","title":{"rendered":"France's Carrefour and Auchan end talks over $19.4 billion tie-up"},"content":{"rendered":"

PARIS (Reuters) -Carrefour and Auchan have ended talks over a possible partnership, the second time this year Carrefour boss Alexandre Bompard\u2019s plans to create a Gallic supermarket powerhouse have been frustrated.<\/p>

FILE PHOTO: The logo of French retailer Carrefour on shopping trolleys in Sao Paulo, Brazil, July 18, 2017. REUTERS\/Paulo Whitaker<\/figcaption>

The potential deal to create a retailer with combined sales of 110 billion euros per year and a French market share of nearly 30%, had looked too complex in terms of valuation and structure, a source close to the matter told Reuters.<\/p>\n

A second source familiar with the talks said Auchan had offered Carrefour 21.50 euros per share, or 16.8 billion euros ($19.4 billion), comprised of 70% in cash and 30% in shares of the combined company.<\/p>\n

That\u2019s more than 30% above Carrefour\u2019s share price last week. But Carrefour ended the talks after its top shareholder, the Moulin family, opposed the deal – mainly on valuation grounds, the source added.<\/p>\n

A person close to the Moulin family, however, told Reuters the family had opposed the tie-up because it \u201clacked industrial rationale\u201d and could raise competition issues as well as threaten jobs in France.<\/p>\n

In January, Canada\u2019s Alimentation Couche-Tard dropped a 16.2 billion euro bid for Carrefour after the French government opposed the deal, citing food security concerns.<\/p>\n

This left Carrefour without the extra firepower to galvanise a turnaround plan Chairman and CEO Bompard was reappointed in May to lead for another three years.<\/p>\n

The extra resources offered by Couche-Tard would have boosted Carrefour\u2019s e-commerce roll-out, a priority as it looks to retain an edge over Amazon on the groceries front.<\/p>\n

The discussions with Auchan, which started in the spring, reviewed various scenarios ranging from equity tie-ups to asset swaps and technological partnerships, the first source said.<\/p>\n

It was unclear if there was potential for talks to be revived. The second source said Auchan, owned by the Mulliez family, did not plan to make a hostile move for Carrefour.<\/p>\n

CONSOLIDATION<\/h2>\n

Analysts have expressed concern that an Auchan-Carrefour merger would increase exposure to the struggling hypermarket store format. Some, however, have said a deal could generate cost savings and buying synergies.<\/p>\n

Bompard has repeatedly said the retail sector is bound to consolidate and his mission is to ensure Carrefour emerges as a winner.<\/p>\n

In 2018, Carrefour and French rival Casino were locked in a dispute after Casino said it had rejected a tie-up approach that Carrefour denied making.<\/p>\n

Carrefour said in June it had also started considering possible tie-ups and divestments for its foreign subsidiaries, but that it had not made a decision to sell any assets.<\/p>\n

Carrefour shares were 1.4% lower at 15.8 euros as of 1110 GMT.<\/p>\n

\u201cWe think there is potential for further offers from Auchan or at least strategic assets disposals,\u201d Bernstein analysts said in a note.<\/p>\n

($1 = 0.8648 euros)<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

PARIS (Reuters) -Carrefour and Auchan have ended talks over a possible partnership, the second time this year Carrefour boss Alexandre Bompard\u2019s plans to create a […]<\/p>\n","protected":false},"author":3,"featured_media":122709,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nFrance's Carrefour and Auchan end talks over $19.4 billion tie-up - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/frances-carrefour-and-auchan-end-talks-over-19-4-billion-tie-up\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"France's Carrefour and Auchan end talks over $19.4 billion tie-up - Fin2me\" \/>\n<meta property=\"og:description\" content=\"PARIS (Reuters) -Carrefour and Auchan have ended talks over a possible partnership, the second time this year Carrefour boss Alexandre Bompard\u2019s plans to create a [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/markets\/frances-carrefour-and-auchan-end-talks-over-19-4-billion-tie-up\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-11T13:41:37+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/10\/Frances-Carrefour-and-Auchan-end-talks-over-19.4-billion-tie-up.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/markets\/frances-carrefour-and-auchan-end-talks-over-19-4-billion-tie-up\/\",\"url\":\"https:\/\/fin2me.com\/markets\/frances-carrefour-and-auchan-end-talks-over-19-4-billion-tie-up\/\",\"name\":\"France's Carrefour and Auchan end talks over $19.4 billion tie-up - 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